Salzgitter lowers outlook after 'unsatisfactory' first half
By Josh White
Date: Monday 11 Aug 2025
(Sharecast News) - German steelmaker Salzgitter reported a pre-tax loss of €83.8m for the first half of 2025 on Monday, a sharp reversal from last year's profit, prompting the company to lower its full-year financial outlook.
The results, driven by a challenging economic environment, weak steel demand, and charges on derivatives, caused company shares to fall on Monday.
Its revenue for the first six months declined to €4.7bn from €5.2bn in the same period last year.
EBITDA fell to €116.8m from €233.6m in the first half of 2024, and the firm's after-tax loss widened significantly to €88.9m, compared to an €18.6m loss a year prior.
Performance across the company's divisions was mixed - the steel production and steel processing units saw losses deepen amid difficult market conditions and a 12% drop in crude steel output.
In contrast, the company's technology business unit delivered a higher pre-tax profit, while its investment in copper producer Aurubis AG contributed €71.5m.
The trading business unit also returned to a marginal profit following restructuring measures.
Chief executive officer Gunnar Groebler said the company was focused on cost discipline and its decarbonisation strategy.
"While others may prefer a nostalgic look in the rear mirror, our technological focus with 'SALCOS' is set firmly on the future," Groebler said.
He added that the company was sending "a very clear message to policymakers about what will happen if Germany can no longer rely on a resilient steel industry".
Highlighting internal initiatives, chief financial officer Birgit Potrafki called the results from the core steel units "unsatisfactory" and "not viable as such over the long term".
She noted that the company's P28 performance programme had already generated an additional earnings effect of €48m and that the company was "rigorously expediting internal measures aimed at improving profit and securing liquidity".
Looking ahead, Salzgitter lowered its forecast for the full 2025 financial year.
It said it now expected sales between €9bn and €9.5bn, with EBITDA between €300m and €400m.
The company narrowed its guidance for its pre-tax result to between a €100m loss and breakeven.
It was also reported that the flagship SALCOS low-carbon steel project was facing construction delays, with production from the new route now anticipated in the first half of 2027.
At 1219 CEST (1119 BST), shares in Salzgitter were down 3.76% in Frankfurt at €22.50.
Reporting by Josh White for Sharecast.com.
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